H308751

U.S. Customs and Border Protection HQ H308751 July 6, 2020 CLA-2 OT:RR:CTF:EMAIN H308751 NVF CATEGORY: Classification TARIFF NO: 8479.70.99 David M. Murphy Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP 599 Lexington Ave Floor 36 New York, NY 10022-7648 RE: Tariff Classification and Country of Origin and Marking of Helix Guitar Processors Dear Mr. Murphy: This letter is in reply to your January 28, 2020 request submitted on behalf of Yamaha Guitar Group, Inc., for a binding ruling on the tariff classification and country of origin of certain models of Helix guitar processors. In arriving at our determination, we have considered the information submitted in your ruling request, information submitted in an amendment dated April 10, 2020 and in a supplement submitted June 30, 2020, additional information submitted via email, and the substance of the teleconference conducted with you on June 29, 2020. FACTS: There are three models of guitar processors at issue: the P21 Helix, P32 Helix, and the P33 HX Stomp. The P21 and P32 are both multi-effects processors for electric guitars, with the P32 having more effects and higher capacity than the P21. They both have a built-in foot pedal and 12 switches on the front, connect to a guitar and a playback system such as a speaker, and are used to alter the sound of the connected guitar. The P33 performs similar functions as the P21 and P32, but lacks the integrated foot pedal, has fewer switches, and can be connected to a personal computer to edit effects and models. Because the units are meant to be operated with one’s foot while playing a musical instrument, they are commonly referred to as pedalboards. When in use, the pedalboards are connected to a guitar and a playback system. The switches and foot pedal (if present) are then programmed through the LCD interface or PC with various effects. Once the device is programmed, the user can change the effects while playing their instrument by using their foot to activate the switches and/or the foot pedal. In your amended ruling request, you present two manufacturing scenarios. In Scenario 1, assembly is contemplated to occur in Malaysia or Vietnam using materials that are wholly manufactured in China. In Scenario 2, assembly is contemplated to occur in Malaysia or Vietnam with printed circuit board assemblies (“PCBAs”) that are manufactured in Malaysia and the remaining materials sourced from China. In both scenarios, assembly of the P21 and P22 will occur in Malaysia. You state that the assembly of the P21 is a 17-step process which involves 247 total parts, including the integration of six separate PCBAs with various cables and wires. Assembly of the P32 is a 14-step process involving 210 parts, including five PCBAs. The assembly process involves preparing the enclosure for the PCBAs and subsequently installing the PCBAs within. After installation, the PCBAs are electrically connected to each other, the foot pedal is installed, and the enclosure is completed. Once assembly is complete, the units are tested for functionality. In both scenarios, assembly of the P33 will occur in Vietnam. In your request, you state that assembly of the P33 is an 11-step process involving 59 parts, including four PCBAs. Assembly of the P33 is substantially similar to assembly of the P21 and P32. Although the location of the PCBA manufacturing differs between the two scenarios, the manufacturing process remains identical. The PCBAs are manufactured using surface-mount technology (“SMT”) and involving integrated circuits sourced from the United States, Singapore, Taiwan, and Malaysia. The PCBAs are also programmed using programming from the United States. The PCBAs each have a discrete function. For the P21: (1) one functions for the LCD display, (2) another functions for the foot pedal LCD, (3) another functions for controlling power supply, (4) another for the footswitch, (5) another controls the input and output functions of the rear of the device, and (6) one controls the microcontroller, a small computer on a single integrated circuit chip, and also contains the digital signal processor. For the P32 the PCBAs have virtually identical functions as the P21 except the P32, lacking a foot pedal LCD, does not have a PCBA to control a foot pedal LCD. For the P33, the PCBAs control (1) the footswitch, (2) input and output of the rear of the P33, (3) the microcontroller which contains the digital signal processor, and (4) user interface functions such as display and buttons. In your request for a binding classification ruling, you assert that the guitar processors are classified under subheading 8543.70.9920 of the Harmonized Tariff Schedule of the United States Annotated (“HTSUSA”), which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere . . . : Other machines and apparatus: Other: Other: Other: Special effects pedals for use with musical instruments.” You do not provide any further discussion regarding classification. In your request for a binding country of origin ruling, you first argue that the PCBAs are a product of the country they were manufactured in using SMT. You contend that the use of SMT operations “result in a new and different product” and substantially transforms the individual components into the PCBA. As justification for this position, you refer to Texas Instruments Inc. v. United States, 681 F.2d 778 (Fed. Cir. 1982), HQ 071827 (Sep. 25, 1984), HQ H287548 (Mar. 23, 2018) (Monochrome laser printer), NY N303008 (Mar. 8, 2019) (cellular telephones), and NY N310182 (Mar. 23, 2020) (rearview sensing camera module). Next, you, argue that the country of origin is where each pedalboard is assembled because the components and PCBAs undergo a “very substantial physical change” by way of “complex assembly operations.” As justification for this argument, you rely on HQ H303529 (June 6, 2019) (postage meter) and assert that where assembly is sufficiently extensive and complex, it substantially transforms components into a different product. You also argue that in NY N305375 (Aug. 9, 2019) (midi controllers), the assembly and interaction of multiple PCBAs is not as complex as occurs in the assembly of the subject pedalboards. ISSUES: Whether the guitar processors are classified under subheading 8543.70.9920, HTSUSA, as special effects pedals for use with musical instruments and what the country of origin is for the guitar processors for country of origin marking purposes. LAW AND ANALYSIS: Classification Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. We have previously classified other guitar pedalboards and sound processors under heading 8543, HTSUS. NY R02388 (Sep. 1, 2005) (special effects pedals/processors); NY G89155 (May 10, 2001) (Yamaha Stomp pre-amplifier). The applicable subheading for the guitar processors is 8543.70.9920, HTSUSA, which provides for: Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: Other: Other: Special effects pedals for use with musical instruments. Country of Origin Section 304 of the Tariff Act of 1930, as amended, provides that, unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the 

ClassificationClassification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. We have previously classified other guitar pedalboards and sound processors under heading 8543, HTSUS. NY R02388 (Sep. 1, 2005) (special effects pedals/processors); NY G89155 (May 10, 2001) (Yamaha Stomp pre-amplifier). The applicable subheading for the guitar processors is 8543.70.9920, HTSUSA, which provides for: Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: Other: Other: Special effects pedals for use with musical instruments.Country of OriginSection 304 of the Tariff Act of 1930, as amended, provides that, unless excepted, every article of foreign origin imported into the United States shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article. 19 U.S.C. § 1304.The country of origin marking requirements are set forth in Part 134, Customs Regulations, (19 C.F.R. §134). 19 C.F.R. § 134.1(b) defines “country of origin” as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of the marking laws and regulations.The test f